It said the deal would also bring "significant inward investment" from Artec's parent company that would set up an integration centre for armoured vehicles in the UK.

In January, Wales' Economy Secretary Ken Skates urged the UK's defence procurement minister Guto Bebb to consider the Piranha vehicle made by General Dynamics UK, which he said could supply suitable vehicles more cheaply and save Welsh jobs.

The issue over the contract was raised by Conservative MP Dr Julian Lewis during Business Questions in the Commons on Thursday.

He had asked for assurances the decision would be announced in the Commons when Parliament is sitting and not during the Easter recess.

Mr David claimed the move was announced on Saturday to avoid scrutiny in the Commons.